Global Cannabis Market Size, Share & Trends Analysis Report 2020-2027
The global Cannabis market was valued at USD 18.2 billion at the end of 2019 and is expected to grow at a CAGR of 17.7% during the upcoming years. One of the important factors in the growth of this market is the legalization of cannabis in various countries. Owing to the increased utilization of cannabis for medical purposes, many countries are legalizing cannabis. In the medical field, cannabis can be used in treating cancer, neurological conditions such as depression, epilepsy, anxiety Parkinson’s, and Alzheimer’s disease. There are also widely used in arthritis. Due to the increased usage in the medical field, Cannabis product demand is increasing day by day.
According to the World Health Organisation (WHO), cancer is the second-largest death-causing disease globally and cancer treatment can be aided by the help of cannabis causing the countries to legalize cannabis thereby favoring the demand. On the other hand, significant side effects by the opioid usage in the treatment of chronic pain, medical cannabis provide the best alternative and has the potential to replace opioid significantly in the upcoming years. In some countries, the threat to black-market cannabis was a growing trend in the last few years but the legalization of medical cannabis has led to a significant decrease in the black-market trends for cannabis and encouraged people to purchase and restore cannabis for medical and adult use.
As per a study conducted by Cannabiz media, after legalizing the cannabis market, it created a great surge in employment opportunities. In the US alone, more than 9500 licenses are provided which created a value chain for the cannabis market, including, cultivators, producers, distributors, labs, and deliveries of the product. With these favoring parameters, the cannabis market has led to the eradication of the black market and encouraging significant improvements in the proper utilization of cannabis as a medical product.
Cannabis type dynamics
Cannabis is segmented further on the basis of type into medical and adult types. The medical segment was the largest in terms of revenue with 71.4% in 2019. The distribution of cannabis medicines is regulated by the government and is prescribed by a physician with the quality control procedures strictly in place for prescription and distribution. In recent years, the medical field has witnessed extreme growth in testing and using medical cannabis with the support of appropriate scientific literature. This research and development have led to increasing consumption of medical cannabis which is likely to foster its growth in the upcoming years. The adult-use is expected to gain a steady but slow growth and is anticipated to gain momentum in the next 10 years. The application may range from a food ingredient to a psychoactive drug. In most countries, the adult-use of cannabis is still illegal and licensed only for medical usage but few countries such as Columbia, Uruguay, Canada, and few states of the USA have legalized cannabis for adult-use. Through legalizing, cannabis countries are focusing on complete eradication of black-market and earning tax revenue levied on the sale of cannabis.
Product type dynamics
The cannabis market is segmented on the basis of products such as oils, buds, and tinctures. Bud segment is the largest segment that is expected to dominate the market in the upcoming years. In terms of continuous and steady growth, the oil segment is expected to witness in the upcoming years. Dried buds are used to reduces cancer growth and to stop the progression of psychotic diseases and are generally used by smoking. However, there are certain side effects of smoking such as COPD, bronchitis, and chronic cough which are expected to decrease the demand of dried buds in the upcoming years. Cannabis oils are used extensively for cancer treatment and can also be used to relieve stress, anxiety, and depression. The usage of oils is dominant than that of smoking cannabis buds since doctors prefer the use of oils much safer than smoking cannabis buds.
Medical application dynamics
The cannabis market is segmented in the medical application on the basis of mental disorders, cancer, chronic pain, and others. The chronic pain segment is the largest and dominant in terms of revenue share which is 44% by the end of 2019. The increased demand for chronic pain and cannabis being one of the best alternatives is the biggest market driver for growth. In the US alone, 22% of adults suffered from chronic pain and similar is the situation in developing countries like India, China, and Brazil which spiked the demand for cannabis products. Mental disorders are expected to be the fastest-growing segment in the upcoming years. As per the reports from WHO, around 50 million people globally were suffering from epilepsy and making it a world health concern. The growing success of clinical trials and positive results for medical cannabis is expected to further drive the growth in the cannabis market.
By 2019, with growing, cultivating, testing, and utilizing, the North America region was the largest consumer and dominated the market in terms of the revenue share of 83%. Favorable factors such as liberal rules of government and legalization of medical cannabis are the market drivers for the growth of the cannabis market in this region. The introduction of the farm bill in 2018 and legalizing cannabis and cannabis-based products is one of the driving factors of the growth. Similarly, in many European countries, the growth, cultivation, and distribution of cannabis are under strict government regulations, which is expected to favor its growth in the region. On the other hand, Israel is currently leading the technology sector with the latest technological developments in agriculture and medical, Israel is helping countries to grow cannabis with the latest technology and assist in the testing of medical cannabis.
Some of the major players who are responsible for research and development in the cannabis market are Aurora cannabis, Aphira Inc., Maricann Group, The Cronos Group, ABcann Medicinals Inc., Organigram Holdings Inc., Canopy Growth Corporation, GW Pharmaceuticals plc, and many more. The growing demand in the cannabis market is expected to encourage the entry of several new players in the upcoming years.
The global cannabis market report is segmented in detail in the following way:
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